James manufactures and sells lotion for $25 per bottle. Steven, the manager of the store, has the following projections for the year 2020:

Sales $300,000

Variable manufacturing costs $192,000

Operating expenses:

Sales commission $30,000

Insurance expenses for offices $18,250

Rent for machine $50,000

Total expenses - $290,250

Net income $ 9,750

a. What is the breakeven point of the dollar sales?

b.How much is the variable product cost per unit?

c. If the company wants to make an after tax income of 16,000, how many bottle of lotion do they have to sell if the tax rate for the company is 21%?

d. If sales decreased 20% from the current of sales $300,000, what is the profit/loss of the company? Ignore tax.

e. Graph question a-d. Show the breakeven point both dollar value and sales unit, the margin of safety, when income is 9,750.